Menif (MNIF) AI Stock Analysis

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Menif

(TASE:MNIF)

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Rating:56Neutral

Price Target:ILA 2,240.00▲(7.23% Upside)

Action:reiterated

Date:10/08/26

Menif scores in the mid-range. Financial performance, the heaviest-weighted factor, is uneven: strong revenue and profit growth with ~29% ROE is offset by elevated leverage (~4.33x debt-to-equity) and poor historical cash conversion, though 2025's shift to positive operating cash flow is a constructive early sign. The technical picture is the main near-term drag, with the price below all key moving averages and negative MACD confirming a persistent downtrend, albeit at deeply oversold levels. Valuation provides important support — a 6.3x P/E and 9.1% dividend yield are compelling, but the discount appears to reflect genuine credit-cycle and leverage risk. Investors should monitor cash flow sustainability and any deterioration in loan portfolio quality.

Positive Factors

Strong ProfitabilityVery strong operating and net margins indicate substantial earnings power relative to revenue. This profitability can support internal investment, strengthen resilience through normal business cycles, and provide a durable base for shareholder returns if margins remain broadly stable.

Negative Factors

High LeverageThe highly leveraged capital structure increases sensitivity to funding costs, refinancing conditions, and credit-cycle pressure. It can also constrain management’s ability to invest or absorb weaker operating results, making financial stability more dependent on sustained profitability.

Menif (MNIF) vs. iShares MSCI Israel ETF (EIS)

Market Cap: ILS 1.29B
Dividend Yield: 8.39%
Average Volume (3M): 31.69K
Price to Earnings (P/E): 6.4
Beta (1Y): 1.45
Revenue Growth: 13.66%
EPS Growth: 20.34%
Country: Israel
Employees: 7
Sector: General
Sector Strength: 55
Industry: Financial - Credit Services

Menif Business Overview & Revenue Model

Company Description

Established in 1999 and based in Ramat Gan, Israel, Menif - Financial Services Ltd specializes in providing equity-related mezzanine financing. The company extends these financial services to developers and contractors operating within the constructi...

Menif Financial Statement Overview

Summary

Mixed picture. The income statement is the clear strength (score 72): revenue scaled from ₪122M in 2021 to ₪538M TTM, net income nearly quadrupled to ₪202M, net margin is ~37.6% and ROE ~29%. However, gross and EBIT margins have swung sharply (gross margin from ~54% to ~99.6% to ~78%), raising questions on cost classification. The balance sheet (score 45) shows heavy leverage, with debt-to-equity of ~4.33x and total debt quadrupling to ₪3.16B, outpacing equity growth to ₪730M — a thin cushion if credit quality deteriorates. Cash flow is the weakest link (score 38): operating cash flow was deeply negative from 2021–2024 (as low as -₪821M), and although it turned positive in 2025 (₪229M, ₪118M TTM), cash conversion is only ~18% of net income and TTM free cash flow growth is -170%, indicating continued dependence on debt financing.

Income Statement

72Positive

Balance Sheet

45Neutral

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	538.30M	532.95M	423.29M	331.91M	183.94M	122.05M
Gross Profit	420.27M	530.88M	229.40M	180.44M	128.34M	92.20M
EBITDA	364.66M	469.16M	198.06M	163.25M	122.31M	74.09M
Net Income	202.38M	186.22M	151.88M	124.42M	92.92M	55.17M
Balance Sheet
Total Assets	3.93B	3.75B	3.22B	2.60B	2.01B	1.10B
Cash, Cash Equivalents and Short-Term Investments	21.83M	42.27M	25.43M	22.10M	21.09M	31.80M
Total Debt	3.16B	2.99B	2.59B	2.11B	1.64B	765.45M
Total Liabilities	3.20B	3.06B	2.66B	2.15B	1.66B	793.09M
Stockholders Equity	730.44M	689.86M	562.25M	450.00M	351.19M	301.54M
Cash Flow
Free Cash Flow	118.05M	228.79M	-422.08M	-427.98M	-820.89M	-174.85M
Operating Cash Flow	118.12M	228.83M	-422.00M	-427.97M	-820.85M	-173.66M
Investing Cash Flow	-197.59M	-552.89M	-88.00K	-7,000	-45.00K	-1.18M
Financing Cash Flow	11.95M	340.90M	425.41M	428.99M	810.17M	176.93M

Menif Technical Analysis

Technical Analysis SentimentNegative

Last Price2089.00

Price Trends

50DMA2215.46Negative

100DMA2233.70Negative

200DMA2384.36Negative

Market Momentum

MACD-29.80Positive

RSI43.11Neutral

STOCH55.56Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:MNIF, the sentiment is Negative. The current price of 2089.00 is below the 20-day moving average (MA) of 2208.85, below the 50-day MA of 2215.46, and below the 200-day MA of 2384.36, indicating a bearish trend. The MACD of -29.80 indicates Positive momentum. The RSI at 43.11 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:MNIF.

Menif Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IL:MNIF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IL:JCFN	74Outperform	ILS 692.54M	7.93	―	0.04%	20.00%	14.06%
IL:DIFI	66Neutral	ILS 1.66B	7.82	―	8.71%	-1.75%	91.68%
IL:MCLL	65Neutral	ILS 714.21M	10.89	―	―	21.55%	14.68%
IL:ISCD	57Neutral	ILS 3.71B	16.06	-1.68%	―	7.18%	―
IL:MNIF	56Neutral	ILS 1.30B	6.45	―	8.39%	13.66%	20.34%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IL:MNIF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IL:MNIF	Menif - Financial Services Ltd.	2089.00	93.72	4.70%
IL:ISCD	Isracard	1109.00	-295.00	-21.01%
IL:DIFI	DIRECT FINANCE OF DIRECT GROUP (2006)LTD	54750.00	4185.61	8.28%
IL:MCLL	Michlol Finance Ltd	1432.00	76.00	5.60%
IL:JCFN	Jacob Finance & Investments Ltd.	2846.00	-579.07	-16.91%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 08, 2026

Menif AI Stock Analysis